“GV Gold has been sustainably holding high positions in the list of the TOP Russian gold mining enterprises. Owing to implementation of the large-scale investment program on launching of the new mines, the Company has demonstrated impressive results having practically doubled its gold production to 304 koz of gold. Today we are establishing the foothold for further growth, based on successful completion of the exploration program and further improvement of the operating efficiency. The key objective is to ramp-up the gold production by 30% in 2021 already.”

We are working on improvement of the operational efficiency in all business units. Our strategic projects commissioned last year — the Taryn Mine and the Ugakhan Mine, as well as our flagship asset — the Golets Vysochaishy Mine, act as the engine of our growth.

GV Gold supports social and economic development of the regions where it operates. The relevant cooperation agreements are signed every year; this document determines the main trends of cooperation in the area of the social programs implementation.

Head of the Environment, Health and Safety DepartmentVladimir Polyakov

Modern business is becoming akin to a blogger — less and less of internal information about the Company’s activity remains non-public. While forming the news agenda, we are more focused on the change of external context around the business, as the dynamic demand for information serves as the catalyst for the PR-service work.

I am convinced, that high production results are ensured with the quality control of the Company’s own processes, but to a high extent the result depends on a transparent and efficient chain of supplies established with our partners. Perhaps, we impose quite strict requirements to our suppliers, but we do it consciously. For us, ensuring a responsible attitude to the terms of the agreement and execution of all delivery terms is the key to maintenance of the core production cycle at the required level.

Earlier on Friday, it was announced that Raiffeisenbank opened a 3-year credit facility of USD 20 M to Taryn Gold Mining Company, CJSC (GV Gold subsidiary).

“At the moment our debt fund equals to USD 75 M. Now we are raising another USD 20 M for the Taryn Project (the Drazhnoye Deposit) in Yakutia. In 2016, I expect, we will raise another USD 50 M for Taryn and Ugakhan (Irkutsk Region) — our core development projects. Further funding will be effected through the net profit refinancing”, — said Mr. Vasilyev.

According to his words, at the end of 2016 (September-October) the Company will commission stage 1 of the Drazhnoye deposit processing plant with the capacity of 700 kt of ore p.a. Now the design works and the infrastructure construction operations are nearing completion. The project is progressing the way it was planned — within the framework of the license agreement.

“The mills will be installed next year and the first gold (100-200 kg) will also be produced in 2016. In winter we will stop the plant and in spring of 2017 it will attain its full capacity. The deposit’s gold reserves have been confirmed — there were 34 t (1 093 koz), and will be c. 40 t (1 286 koz) of gold with the grade in ore of c. 4 g/t. It is sufficient enough for the stage 1 mine”, — remarked the CEO.

As it was mentioned before, by 2020 GV Gold (Vysochaishy, OJSC) plans to achieve the annual gold production of 13 t (418 koz). The Company associates the production growth with development within the framework of the Yakutia and Irkutsk projects having the total investment requirement of more than USD 210 M. By 2016, at the Ugakhan deposit (JORC-compliant resources — 53.9 t of Au) the Company plans to commission a mine with the capacity of 2.6 Mt of ore p.a. and attain the annual gold production of 3 t (96 koz) by 2018. The capital expenditures are estimated at USD 110 M.

GV Gold is one of the Top-10 Russian gold mining companies. Mineral resource (JORC-compliant) totals 338 t of Au (10.9 Moz), the exploration potential is 753.7 t of Au (24.2 Moz). The Company operates four processing plants with the total capacity of c. 5 Mt of ore p.a. In 2015 GV Gold intends to keep the gold production at the level of the previous year — 5.5 t (176 koz) of Au.